Toyota’s European operations chief reckons he can sell a million vehicles in Europe by 2005, well up on the official target of 800,000 units, Reuters reported.
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In a Reuters interview at the Paris motor show, the president and chief executive of Toyota Motor Marketing Europe, Akira Imai, said that the current target, equivalent to 5% market share, was modest.
“Barring a market crash, sales of 800,000 cars by 2005 can be achieved 100%,” Imai told Reuters. Asked if the company could sell one million units in Europe by that year, he said: “Absolutely.” Reuters said.
Reuters said that Toyota sold 432,890 cars between January and August this year, up 13.5% year-on-year, taking a 4.4% share of the Western European market, while 2002 sales are expected to exceed 700,000 units in what would be a sixth straight record-high.
Imai told Reuters that competition was extremely intense in Europe, especially in the west where local makers dominate, but Toyota has been successfully cutting parts procurement and distribution costs.
Imai also told Reuters that more than 90% of parts used in Europe are now being procured locally but, in the next two to three years, Toyota Europe will begin obtaining cheaper parts in Southeast Asia, South Africa and Australia.
According to Reuters, Imai said that market share would have to reach at least 10% for Toyota to be recognised as a respectable brand in Europe.
Imai told Reuters that the key to succeeding in the tough market was to produce at least one million vehicles a year, cutting the cost of parts per vehicle.
